Report: Fox Asked to Derail Sinclair-Tribune Merger

Apparently, 21st Century Fox, the media conglomerate controlled by Rupert Murdoch, is weighing options to help thwart a potential takeover of Tribune Media by Sinclair Broadcast Group. Fox is deliberating over possible choices after having been approached by several parties, which are interested in acquiring Tribune directly or as part of a consortium, said the people, who asked not to be identified because the talks are private. One of the parties that has talked with Fox is activist investor Starboard Value LP, which owned a 4.4 percent stake in Tribune as of March 15.

While Sinclair recently approached Tribune about a possible merger, the companies aren’t close to a deal, other people familiar with the matter said. Nexstar Media Group is also weighing a bid, although it hasn’t hired a financial adviser yet, the people said. Nexstar has a history of laying in wait for a potential deal, striking an agreement to acquire Media General in 2015 only after Media General had announced plans to merge with Meredith Corp. While some of the parties eyeing Tribune are interested in teaming up with Fox for a bid, Fox doesn’t want to acquire the broadcaster, the people said. Murdoch’s company may ultimately decide not to intervene at all, apparently. A combination of Tribune and Sinclair, two of the country’s biggest TV station owners, would give Sinclair control of 28 percent of the Fox-affiliated channels that Murdoch’s company doesn’t own directly, the people said. That would give Sinclair a stronger negotiating hand in future talks with Fox about how to split fees from cable providers, the people said.